Dutch lender ING has completed the sale of the majority of its real estate investment management business to CB Richard Ellis Group, which changed its name to CBRE Group, in early October, for about $1.0 billion in cash in two separate transactions. ING agreed to the deal in mid-February.
Dutch lender ING Groep N.V. (ING: News ) announced Monday the completion of the sale of majority of its real estate investment management business to CB Richard Ellis Group, Inc., which changed its name to CBRE Group, Inc. (CBG) in early October, for about $1.0 billion in cash in two separate transactions. ING agreed to the deal in mid-February.
“The divestment of ING REIM fits our strategic objectives of reducing exposure to real estate, simplifying our company and further strengthening our capital base,” ING CEO Jan Hommen said in a statement.
ING noted that the divestment resulted in a capital release of around 520 million euros and an after tax gain of about 470 million euros, excluding certain post-closing events which could provide some potential further upside.
The company had earlier said it expects to incur pre-tax transaction costs relating to the acquisitions of about $150 million, including financing, retention and integration costs.
The divestment of ING REIM include substantially all of the ING Real Estate Investment Management operations in Europe and Asia, as well as Clarion Real Estate Securities or CRES, its U.S.-based global real estate listed securities business.
ING noted that it closed the sale of CRES in the beginning of the third quarter and the sale of ING REIM’s Asian business was completed earlier in October.
However, CB Richard Ellis did not acquire Clarion Partners, ING’s U.S.-based private market real estate investment management company. In a separate transaction, this division was sold to Clarion Partners management in partnership with Lightyear Capital LLC for about $100 million. The deal was completed in the second quarter on June 10.